Lee Says Economists Misreading Inflation, Sees Crypto Rally Ahead

Fundstrat Global Advisors' Tom Lee has expressed a bullish outlook for Bitcoin and Ethereum, citing that economists are misreading today's inflation picture. In an interview with Wealthion, Lee pointed out that about 60% of the gap between core Personal Consumption Expenditures (PCE) and Core Price Index (CPI) is driven by portfolio fees and flash memory prices.

Lee argued that these fees do not reflect household inflation, and when stripped out, core CPI is close enough to the Fed's target that aggressive tightening isn't needed. He believes that economists are 'fighting last year's wars' and need to adjust their views on inflation.

Fundstrat's 2% Bitcoin recommendation has grown to more than 85% of some client portfolios due to price appreciation, not additional purchases. Lee sees crypto entering a bullish stretch, pointing to the 4-year cycle bottom expected in October and increased leverage since last year's liquidation.